One section is now handling mortgage business in the Netherlands and
the other is handling international activities and general matters. In the
mortgage sector, a new broad based plan aimed mainly at credit control
has been implemented to make the sector more responsive to current
requirements. Our company progressed during the year in implement
ing on a company wide basis the budget and progress control system.
While we attach much importance to career planning, we must
recognize that the size of the workforce at FGH offers only limited
possibilities. We continue to fill vacancies with existing staff wherever
possible.
The quality of our personnel is always of crucial importance. In order to
develop and maintain a quality staff and to offerthem every opportunity
to react appropriately to changing circumstances, the program of
courses in technical and communication skills already underway was
continued and intensified. We are pleased to note that our personnel
generally contend favorably with the more complicated subjects.
As a company not bound by the Collective Labor Agreement (CAO), we
still follow the developments in related sectors of the industry regarding
employment working conditions. Official wage restraint regulations
imposed by the government are causing increasing problems and have
led to occasional stress within the organization. It would be helpful to
have government and parliament pay more attention to this area.
As reported last year, in anticipation of the move of our head office from
Amsterdam to Utrecht we drew up a removal plan. Because of the poor
situation in the housing market, our employees made less use of it than
we had planned. Now that ourmovewill be occuring around theturn of
the year, the number of removals in 1982 is expected to increase.
Relations with the staff council were satisfactory. The positive critical
approach of the council was an important contribution to good decision
making. In 1981 the number of employees in both the credit and real
estate divisions remained virtually unchanged. About 40 staff members
were transferred internally and roughly an equal number of vacancies
were filled by the hiring of new employees. At the end of 1981 the
workforce of FGH totalled 374. If we include Gebam, Kokand Van Haften
subsidiaries, the total is 970. Because of the current level of our business
activities, it is necessary to restrict growth in staffing levels as much as
possible.
Diversification
FGH's other interests are in areas related to the banking and real estate
activities of the main company. They include the Kok Group (real estate
management and brokerage and insurance brokerage), Gebam
(contracting) and Van Haften Co (securities business). Our policy is to
better coordinate their activities where necessary. For this purpose the
Diversifications Directorate was established on January 1,1982, to
strengthen the links between the subsidiaries themselves and the
parent company.
Eventhough the Kok Group showed a positive result, the problem
remains that the income from the services it provides tends to lag the
rising costs of these services. The increased costs are due both to
greater government involvement in housing and to more difficult
economic conditions. Rising rents combined with falling income have
always noticeably weakened the tenants' ability to meet their
obligations.
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